Regional Banks Struggle as U.S. Deposits Stabilize

Deposit outflows that left many regional banks reeling in the wake of Silicon Valley Bank's failure have slowed and in some cases reversed, as investors tried to ascertain whether the crisis was contained. Deposits in the country's banking system were stabilizing and U.S. banks had limited exposure to Credit Suisse Group AG. First Republic Bank, PacWest Bancorp, and Western Alliance Bancorp have seen their shares plunge since the banking crisis started on March 8 with the collapse of Silvergate Capital Corp. At least four U.S. lawmakers said they would consider whether a higher federal insurance limit on bank deposits than the current $250,000 threshold was needed to inspire more confidence in the system.